OCC Plans to Review Fair Lending, Appraisal Bias in 2024

Originally published on September 28, 2023, by Stephanie Collins for the Office of the Comptroller of the Currency.

The Office of the Comptroller of the Currency (OCC) today released its bank supervision operating plan for fiscal year (FY) 2024.

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Non-white and LGBTQ+ Americans Face Discrimination When House Hunting: Report

Originally published on September 28, 2023, by Kenneth Applewhaite for Redfin.

Nearly one-third (32%) of Black Americans who recently moved believe they were discriminated against based on their ethnicity or race during their home search, and an additional 22% believe they may have been discriminated against. That’s according to a survey from Redfin (redfin.com), the technology-powered real estate brokerage. The share is even higher for Hispanic Americans: 36% experienced discrimination and an additional 22% believe they may have been discriminated against.

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Nation’s Residential Real Estate Valued at $52T, Data Shows

Originally published on September 26, 2023 by Orphe Divounguy for Zillow.com.

  • The total value of the U.S. housing market is 49% higher than before the pandemic. 
  • New York, Los Angeles, San Francisco, Boston, and Miami are the most valuable housing markets. 
  • Florida now boasts the second-most-valuable real estate market, surpassing New York. California retains the top spot. 

The U.S. housing market has surged over the past year after a temporary hiccup from July 2022 to January 2023. Higher mortgage rates then contributed to a decline in the total value of residential real estate as potential buyers reconsidered their plans and residential investment fell. That downturn has proven to be short-lived as housing has rebounded impressively so far in 2023, with the total value of the U.S. housing market surging by more than $2.6 trillion over the past year. 

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Home Construction on the Decline in Largest Markets: NAHB

Originally published on September 5, 2023, by Elizabeth Thompson and Stephanie Pagan for the National Association of Home Builders.

Rising mortgage rates and elevated construction costs have taken a toll on the pace of single-family construction in markets across the nation, with the slowdown most pronounced in large metro areas. Multifamily market growth also fell in most areas of the country, according to the latest findings from the National Association of Home Builders (NAHB) Home Building Geography Index (HBGI) for the second quarter of 2023.

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Miami Still Most Competitive Rental Market: RentCafe  

Originally published on September 19, 2023 by Veronica Grecu.

Miami was the most competitive rental market during this summer’s peak moving season, but the Midwest was America’s hottest apartment region, with three markets in the top five nationally. That’s largely because the Midwest offers housing options that fit more ranges of budgets, as well as a cost of living that’s lower than on the coasts. Naturally, this makes it a very attractive region to live in for renters seeking a balance between budget and quality of life.

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Buyers Sought for Signature Bank’s $33 Billion Commercial Real Estate Portfolio

Originally published on September 5, 2023, by Pete Schroeder for Reuters.com.

The U.S. Federal Deposit Insurance Corporation (FDIC) is seeking buyers for the $33 billion commercial real estate (CRE) loan portfolio of failed New York lender Signature Bank, it said on Tuesday.

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NAR Survey Reveals Some Concerns About Data Collectors

Originally published in May 2023 by the National Association of Realtors.

In May 2023, NAR surveyed its members pertaining to data collectors in the appraisal process. The findings are as follows:

  • Sales agents accounted for the largest proportion, with 45% of participants holding this license. Brokers followed with 24%, and appraisal-certified professionals comprised 14% of the respondents. Broker-Associates and Appraisal Licensees accounted for 13% and two percent, respectively, while the remaining two percent reported holding other types of real estate licenses.
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Low Inventory of Homes Boosts Construction: Fed Beige Book

Originally published on September 6, 2023, by the Federal Reserve Bank of Kansas City.

The inventory of single-family homes for sale fell in nearly all Fed districts during the past month, resulting in a boost in new construction activity, the Federal Reserve reported Sept. 6 in its latest Beige Book. The construction of affordable housing has become strained in many districts amid rising financing costs and higher insurance premiums.

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Fannie Offers Guidance on Appraisals for 3D-printed Homes

Originally published on September 6, 2023, by Fannie Mae. 

Are unique or nontraditional homes eligible for delivery?

Unique Housing Types

In the appraisal and appraisal report review processes, special consideration must be given to properties that represent unique housing for the subject neighborhood. Mortgages secured by unique or nontraditional types of housing, including, but not limited to, earth houses, geodesic domes, and log houses are eligible for sale to Fannie Mae provided the appraiser has adequate information to develop a reliable opinion of market value. It is not necessary for one or more of the comparable sales to be of the same design and appeal as the property that is being appraised, although appraisal accuracy is enhanced by using comparable sales that are the most similar to the subject property. On a case-by-case basis, both the appraiser and the underwriter must independently determine whether there is sufficient information available to develop a reliable opinion of market value. This will depend on the extent of the differences between the special or unique property and the more traditional types of houses in the neighborhood and the number of such properties that have already been sold in the neighborhood.

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AI Releases Podcast Addressing Appraiser Diversity Initiative, New DEI Award

Originally published on September 15, 2023, by the Face Value Appraisal Insitute Podcast.

The Appraisal Institute on Aug. 31 released its latest episode of the Face Value podcast, “Dedication to Diversity: A Conversation About the Appraiser Diversity Initiative.” Hosts Tonia Vailas, MAI, AI-GRS, and Warren Boizot, SRA, AI-RRS, are joined by Smedmore Bernard Jr., MAI, Brent Quashie and Elana Wroten to share their experiences and the advice they have for others. Additionally, they talk about the new William S. Harps DEI Award.

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AI Opens PAREA Program Registration

Originally published on September 12, 2023, by the Appraisal Institute. 

The Appraisal Institute, the nation’s largest professional association of real estate appraisers, announced today that the organization’s Practical Applications of Real Estate Appraisal program (AI PAREA) for the licensed residential path has launched broadly, and registration is now open.

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Revised Waters of the US Rule Affects Property Rights, Appraisals

Originally published on August 29, 2023, by the United States Environmental Protection Agency.

On August 29, 2023, the U.S. Environmental Protection Agency (EPA) and Department of the Army (the agencies) issued a final rule to amend the final “Revised Definition of ‘Waters of the United States’” rule, published in the Federal Register on January 18, 2023. This final rule conforms the definition of “waters of the United States” to the U.S. Supreme Court’s May 25, 2023, decision in the case of Sackett v. Environmental Protection Agency. Parts of the January 2023 Rule are invalid under the Supreme Court’s interpretation of the Clean Water Act in the Sackett decision. Therefore, the agencies have amended key aspects of the regulatory text to conform it to the Court’s decision. Read more about the conforming rule.

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SEC Adopts Fund Adviser Rules, Requires Valuation Opinion

Originally published on August 23, 2023 by the U.S. Securities and Exchange Commission.

The Securities and Exchange Commission today adopted new rules and rule amendments to enhance the regulation of private fund advisers and update the existing compliance rule that applies to all investment advisers. The new rules and amendments are designed to protect private fund investors by increasing transparency, competition, and efficiency in the private funds market.

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Restaurants are Acquisition Targets Despite Ongoing Challenges, Report Shows

Originally published on August 28, 2023 by Phillippa Maister for GlobeSt.com.

Restaurants have become attractive targets for acquisitions despite ongoing challenges with sales rising 10.3% over the previous year in the second quarter of 2023 following a 3.2% gain in Q1, according to BizBuySell, an online business for sale marketplace. Furthermore, restaurants that sold in Q2 generated more revenue and buyers paid more for them. 

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Multifamily Investors Most at Risk in Sunbelt, Data Shows

Originally published on August 21, 2023, by Barbara Ballinger for GlobeSt.com.

Over the next two years, CRE borrowers will face more than $1 trillion in debt maturities. Some may be able to refinance or restructure their debt, but others may have to sell assets as lending sources become hard to access. 

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Student Housing Among Strongest CRE Sectors: Berkadia

Originally published on August 8, 2023, by Anneliese Mahoney for the Mortgage Banker's Association.

Berkadia, New York, in its 2023 U.S. Student Housing Preleasing Report found student housing operating fundamentals are among the strongest in the commercial real estate sector, with the fall 2023 lease-up cycle the fastest on record.

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White House Launches HUD Program to Lower Housing Costs, Increase Supply

Originally published on July 27, 2023 by the White House.

resident Biden’s economic vision is about building an economy from the middle out and bottom-up, not the top down— that’s Bidenomics. A critical foundation of that vision, and the central goal of the Biden-Harris Administration’s Housing Supply Action Plan, is an economy where everyone has access to a safe and affordable home. That vision means lowering costs, including by building and preserving more housing, particularly for lower- and middle-income households. Today’s announcements will lower housing costs by tackling challenges that have stifled affordable housing for decades, as well as seizing immediate opportunities:

  • Reducing barriers to building housing like restrictive and costly land use and zoning rules;
  • Expanding financing for affordable, energy-efficient and resilient housing; and
  • Promoting commercial-to-residential conversion opportunities, particularly for affordable and zero-emissions housing.
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Foreign Buyers Backing Away from US Residential Investment: NAR

Originally published on August 1, 2023, by Troy Green for the National Association of Realtors. 

oreign buyers purchased $53.3 billion worth of U.S. existing homes from April 2022 through March 2023, slipping 9.6% from the previous 12-month period, according to a new report from the National Association of Realtors®. Foreign buyers purchased 84,600 properties, down 14.2% from the prior year and the fewest number of homes bought since 2009, when NAR began tracking this data. Overall, U.S. existing-home sales totaled 5.03 million in 2022, down 17.8% from 2021.

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Supply of Coworking Spaces Jumps 10% for the Quarter, Yardi Reports 

Originally published on July 26, 2023 by Laura Pop-Badiu for the Coworking Cafe.

Coworking — which has consistently been on the rise and significantly fueled by the increase in remote and hybrid work — continues its upward trajectory across the U.S. And, with more flexible workspaces opening their doors every day and new operators entering the market, the changes in this industry are notable, even in the span of just a few months.

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Banks Plan to Further Tighten CRE Loan Standards: Survey

Originally published in July 2023 by the Federal Reserve.

The July 2023 Senior Loan Officer Opinion Survey on Bank Lending Practices

The July 2023 Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) addressed changes in the standards and terms on, and demand for, bank loans to businesses and households over the past three months, which generally correspond to the second quarter of 2023.1

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